BANKING
| RBI allows interest rate futures in 91-day T-Bills Tue, 08 Mar 2011 |
| MUMBAI: Widening the scope of interest rate futures market, the Reserve Bank of India on Monday permitted 91-Day government bond to be traded in this market. It has been decided to introduce Interest Rate Futures on 91-Day Treasury Bills issued by the Central Government, the RBI said in a statement. At present , only 10-year government bond is traded in the Interest Rate Futures market. The notional coupon on the 10-year government security for rate future contracts is 7 per cent with a semi-annual compounding. The RBI said the contract should be on 91-Day Treasury Bills issued by the Centre and it must be settled in rupees. The final settlement price of the contract will be based on the weighted average price or yield obtained in the weekly auction of the 91-Day Treasury Bills on the date of expiry of the contract, the RBI said in the statement. — PTI |
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